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“They wanted to be released from everything, including original sin,” said a U.S. official involved in the discussions.

From today’s Wall Street Journal….



Efforts to reach a settlement that would end the long-running probe of foreclosure practices are snagged over whether banks will get broad legal immunity from state officials for mortgage-related claims.

Federal and state officials are seeking penalties of $20 billion to $25 billion from Bank of America Corp., J.P. Morgan Chase & Co. and other financial firms under investigation since last fall. The banks are pushing hard for a deal, but they have insisted on a wide-ranging legal release from state attorneys general.

“They wanted to be released from everything, including original sin,” said a U.S. official involved in the discussions. The legal protection sought by the banks included loan origination; securitization and servicing practices; fair-lending procedures; and their use of the Mortgage Electronic Registration Systems, an industry-owned loan registry that often acts as an agent for owners of mortgage loans, people familiar with the discussions said.

“The reason the banks would settle or pay anywhere near $20 billion to $25 billion is to get this behind them,” said one person familiar with the banks’ thinking. “There’s no reason the banks would pay that amount of money and leave their flank exposed.”

U.S. and state officials dismissed the push for broad immunity as a “nonstarter,” according to a federal official involved in the talks, but they have countered with a narrower offer. It would cover robo-signing and other servicer-related conduct but leave banks open to potential legal action for wrongdoing in fair lending and securitization, according to people familiar with the situation. Attorneys general in California, Delaware, Massachusetts and New York have said they are investigating mortgage-securitization practices.
Illinois Attorney General Lisa Madigan, shown in 2009, said in regard to a settlement with banks that ‘we are not releasing fair-lending claims.’

“Those of us at the table…have maintained this investigation is about robo-signing and loss-mitigation problems,” Illinois Attorney General Lisa Madigan said in an interview. “The release should be narrowly drafted to cover those issues.”

The debate over the release is one of the most contentious issues facing banks and government officials, who began formal settlement discussions in March, and must be resolved for a deal to proceed.

Federal officials are aiming for a settlement by Labor Day, with some insisting that making a deal soon would give the housing market a much-needed boost and avoid the risk of a protracted legal showdown with the banks. The foreclosure machine has been sputtering since the issue come to the fore last fall, though banks insist their procedures resulted in few or no wrongful foreclosures.

Legal releases are thorny to negotiate, since parties under investigation want the broadest possible protection and government officials want to maintain their ability to pursue wrongdoing. In the foreclosure investigation, the process is unusually complicated by the large number of regulators and financial institutions involved, big money at stake and high-profile status of the case.

The banks have said the size of any settlement should be tied to the scope of the legal release and number of states signing an agreement. One tactic being weighed by the banks is to agree to a settlement acceptable to 80% of the states, sources familiar with the banks’ position said.

The scope of a release isn’t likely to be a substantial hurdle for states that aren’t pursuing their own investigations of mortgage practices. In addition, some types of legal claims could be difficult to pursue regardless of an immunity agreement because statutes of limitation might have expired, lawyers said.

Some state attorneys general are publicly resisting a broad legal release or even a narrower agreement if it would impede existing cases. “We in Illinois have made it eminently clear every time we talk about releases that we are not releasing fair-lending claims,” said Ms. Madigan.

Illinois has filed fair-lending lawsuits against Wells Fargo & Co. and Countrywide Financial Corp., acquired by Bank of America in 2008.

A Wells Fargo spokesman said the company has filed a motion to dismiss the Illinois lawsuit, and is awaiting the court’s ruling.

A Bank of America spokesman said: “We continue to believe that the best way to get the housing market going again in every state is a global settlement that addresses these issues fairly, comprehensively, and with finality.”

Nevada Attorney General Catherine Cortez Masto said she is “going to be very cautious” about any release that could affect investigations or litigation. Ms. Masto has alleged that Bank of America violated the law in its handling of troubled loans. “A broad release isn’t going to do … any good \[for me\] or the people of my state.”

Massachusetts Attorney General Martha Coakley recently said she won’t let banks escape potential legal liability for claims related to securitization and use of the Mortgage Electronic Registration Systems “until we know all the facts and all of the damage.” Doing otherwise “is like buying a used car without looking under the hood. There’s a good chance you will get a lemon.”

New York Attorney General Eric Schneiderman has issued subpoenas or requests for information to a range of parties involved in the mortgage machine. The attorney general “remains concerned by any settlement agreement that would preclude attorneys general from conducting comprehensive investigations of the mortgage crisis,” a spokesman for Mr. Schneiderman said.

Delaware Attorney General Beau Biden has also begun investigating securitization and other mortgage-industry practices. “We would oppose any settlement that would release claims broader than servicing conduct,” says Delaware Deputy Attorney General Ian McConnel.”That would include origination, securitization and [Mortgage Electronic Registration Systems] claims.”

Write to Ruth Simon at, Vanessa O’Connell at vanessa.o’ and Nick Timiraos at

20 Responses

  1. […] AMNESTY FOR BANKS SOUGHT IN NEGOTIATIONS MOST POPULAR ARTICLES GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE SETTLEMENT TARGET: LABOR DAY!! “They wanted to be released from everything, including original sin,” said a U.S. official involved in the discussions. From today’s Wall Street Journal…. FORECLOSURE TALKS SNAG ON BANK LIABILITY By RUTH SIMON, VANESSA O’CONNELL and NICK TIMIRAOS Efforts to […] 38.017951 -122.135262 Share this:TwitterLike this:LikeBe the first to like this post. […]

  2. The interesting thing is that he already lost money with some other earlier investment. He may be getting something with loss.

  3. Incredible!! This is as corrupt as it gets. The Mafia will not pay for their crimes, basically. The president is allowing this disgusting behavior to flourish in our society. Might as well let all the criminals who committed economic crimes out of prison. All those thieves sitting in jail might as well appeal and also get a “get out of jail free” card. Should this behavior be tolerated: forgery, fraud, embezzlement, obstruction of justice, and all the other crimes that these banks have committed? This is the message that our country is sending to the rest of us. I guess if you have enough power and money you can get out of anything, even murder. The rich will overpower and conquer. The rest of us are just debt slaves to the rich.

    Lets make the top executives at BofA like Moynihan, Desoer and the other executive rats who have all participated in this “racket” go to prison. I think orange jumpsuits would look great on them. This well deserved vacation behind bars will give them time to reflect on their “financial terrorist” crimes and on how they have destroyed so many lives. They engorged their pockets with tainted money and have done every illegal crime under the sun to be on top.

    Racketeering is running rampant at Bank of America and no one is going to prison. For years under RICO, racketeering crimes have served a hefty price that includes freezing the criminal’s assets, large fines and prison time but so far, these bank are getting off scott-free.

    If you would like more information about Bank of America’s racketeering practices please read here: “Bank of America is a Racketeering Enterprise” Please read my article here:

    Everyone can do their part and sign a petition that will hold Bank of America accountable for RICO violations: Please sign this petition:

    This unethical and evil bank (Bank of America) and all the other criminal banks must shut down. It will be up to our government to do the right thing and no longer tolerate this type of behavior. If not, the homeowners will revolt.

  4. Schneiderman seems to be one of the few who gets what is truly going on with these big banks, and is trying to dig up the dirt to PROVE it. I live in Alabama, and our AG here is happily content to sit on the side of the fence that requires the least work for him. Personally, I believe settlements with these banks isn’t going to work, they will eventually be back to the same old same old and this does nothing for them except give them more wiggle room to keep committing fraud. AG Schneiderman seems to be one, one of 50 AG’s that’s willing to put the screws to these banks and get to the bottom of the issues. We need more like him. Keep tightening the screws on these banks and eventually they will all squeal like little pigs!!!

    Anyone on the off chance catch the news out of Huffington Post last night about Warren Buffett giving $5Billion to Bank of America? Apparently Mr. Buffett feels that BofA has a strong leadership core and would hate to see this bank flounder. Maybe we need to send copies of complaints from homeowners on over to Mr. Buffett, so he might be able to pull his head outta his hiney and see the light!


    “Schneiderman, the New York attorney general, moved to block the Bank of America mortgage settlement earlier this month, claiming in court documents that another bank, acting as a trustee representing the investors, committed fraud.

    The trustee, Bank of New York Mellon, knew the mortgage-backed securities created by Countrywide Financial, the lender that BofA acquired in 2008, were defective, but it essentially looked the other way and didn’t inform investors, Schneiderman claimed. The deception that investors say was committed by Countrywide is only part of the story, according to the attorney general’s court filing.

    Schneiderman asked a judge to reject a settlement that BofA had reached with BNY Mellon this summer. The $8.5 billion prize would amount to less than 4 percent of the roughly $220 billion of unpaid principal that’s still outstanding on the securities, according to a recent Bank of America filing with the Securities and Exchange Commission.

    The attorney general’s court filing also noted that the job description of the state’s chief law enforcer includes “protecting the economic health and well-being of all investors who reside or transact business within the State of New York.”

    Schneiderman’s intervention surprised many in the financial community, who had expected the settlement to go through.”

  6. From PRNewswire: (Banksters dirty laundry could get exposed here)

    American Home Mortgage Servicing, Inc. Files Lawsuit – Seeks Recovery from Lender Processing Services, Inc. and DocX, LLC

    Remediation of Improperly Executed Foreclosure-related Documents Costing AHMSI Millions

    COPPELL, Texas, Aug. 23, 2011 /PRNewswire/ — American Home Mortgage Servicing, Inc. (AHMSI) today announced that it has filed a lawsuit against Lender Processing Services, Inc. (LPS) and its affiliate, DocX, LLC (DocX), seeking redress for the millions of dollars in losses that AHMSI has suffered, and continues to suffer, as a result of LPS and DocX’s improper execution, notarization, and recording of assignments of mortgage affecting more than 30,000 residential mortgages across the country.

    The lawsuit, filed today in District Court in Dallas County, Texas, follows AHMSI’s unsuccessful attempt to recover its losses during more than a year of discussion among the parties.

    The AHMSI lawsuit seeks:

    a declaratory judgment that the contract between the parties, as amended, is binding and effective;
    an order compelling defendants to arbitrate AHMSI’s claims for breach of contract and indemnification; and
    an award of damages relating to non-arbitrable claims sufficient to reimburse AHMSI for the millions of dollars in losses stemming from defendants executing, notarizing, and recording improper assignments on behalf of AHMSI.
    DocX prepared, executed and recorded lien releases, assignments of mortgage and related documents for AHMSI from April 2008 through November 2009. During this time certain DocX and LPS employees were duly appointed by AHMSI’s board of directors as “Special Officers” of AHMSI, with powers limited to executing mortgage-related documents. However, in late November 2009, LPS informed AHMSI that from March 2009 through October 2009, a substantial number of assignments of mortgage were executed by “surrogate signers,” that is, by individuals who were not designated as Special Officers, but who signed in the name of one or more of the designated Special Officers. At no time did AHMSI sanction or know of the “surrogate signing” practices of LPS and DocX.

    Jordan Dorchuck, chief legal officer – AHMSI, said, “Upon learning of this unauthorized use of surrogates, we terminated the services of DocX and promptly conducted an extensive, 50-state remediation effort to address any issues caused by this problem. Our remediation efforts are, and have been, focused on correcting affected assignments of mortgage to ensure they comply with all local, state and federal laws. This has been a vast undertaking, necessitating coordination with local counsel in each state.”

    Based in Coppell, Texas, AHMSI is the 15th largest mortgage servicer in the country, managing nearly $72.5 billion in loan servicing, representing approximately 384,000 customers. Since its inception in April 2008, AHMSI has modified over 175,000 mortgage loans, including over 27,000 under the U.S. government’s Home Affordable Modification Program (HAMP). AHMSI’s more than 3,000 associates work each day with the mission of helping families preserve their dream of home ownership. AHMSI is a privately-held company owned by equity funds managed by WL Ross & Co., a financial management company with over $8 billion in assets under management.

    SOURCE American Home Mortgage Servicing, Inc.

    Back to top

  7. In other words 4 years from the time the PSA says my “loan” was “supposed to” go into the REMIC trust…which of course it never did…

  8. Forgive me if this has been answered before, but I have a Statute of Limitations question for anyone (tnharry?):

    If a SOL on a promissory note in California is 4 years…and I signed it in 2006…and they have no proof of a “mortgage” ever going into a “trust”…doesn’t that mean they cannot legally sue me regarding ANYTHING to do with the note—much less foreclose—based on that realty alone???

  9. By then, Louise, the FEDS and the BANKS will own everything anyway. They can repay the Chinese with land instead of gold.

  10. here’s another contact that’s involved in this investigation….

    USDOJ Anti-trust Division, San Francisco

  11. The PMI Group, ONE OF THE LARGEST BOND INSURERS, on Friday told its mortgage banking clients that it has immediately (last Friday) stopped writing new insurance policies.

    This is another group of what were once “blue chip” companies that fell into the abyss of mortgage fraud.

  12. Oh,

    AND DO IT NOW!!!!!!

  13. why don’t you tell them how you feel?

    Office of Legal Policy Laison

    By Mail
    Office of Legal Policy
    Room 4234 Main Justice Building
    950 Pennsylvania Avenue, N.W.
    Washington, DC 20530-0001

    By Phone
    (202) 514-4601

    By Fax
    (202) 514-2424

    send e-mails with attachments (not too large) of all your fraudulent documents


  14. Major laws that govern banks need to be written and rewritten. The banks needs to be under major regulation. It is unfortunate that Congress did not learn this lesson from the Great Depression. Glass Steagall should never have been repealed and should be put back in place with even more regulations. If the banks are not regulated, this nightmare will come back again. Of course, if we wind up in a major depression, then, I suppose, Congress will come up with some regulation. Remember this when you keep hearing the rhetoric about small government and no regulation. No regulation means screw the American people.

  15. This is unbelievable and does NOTHING for the middle class homeowners as a victim.

    Send an email to Dylan Ratigan of MSNBC with “Gather the forces to stop the AGs settlement” in the Subject line at

  16. I’m reminded of a conversation with someone in the office of the attorney general for the person (State of xxx).
    The One in the office told me, “The Attorney General does not represent persons or individuals, he represents the ‘State of xxx’.”

    I looked up the definition of ‘state’, in Black’s Law 5th, and saw ‘state’ is People.

    So I called the office and said, ‘I am not a person nor an individual, I am a People and the Attorney General represents me.’

    What became of that, who knows, but they office was put on notice that there are ‘people’ in the state that are affected by what the bank did.

    I made sure I sent that information in writing too, and if you need a thumbprint to prove I’ve got a hand and I’m not a person but I’m a people, I can give you that too, (by my hand).

    Trespass Unwanted, life, allodial, corporeal, in propria persona, in jure proprio, jure divino, Namaste

  17. Thou shalt not steal.
    Banks factored in the money to be made from the moment a promissory note could be garnered.
    They knew the money to be made packaging the loans and the more complex the packages the longer it’ll take for anyone to realize the money flow had stopped going into them.
    If the money stopped flowing into some of the riskier packages, they knew they could get money from the Fed window at a low interest rate. If all were in the same boat, they knew they could argue ‘to big to fail’ to be propped up by bail out. And they knew they could restrict the supply of money to the country and push us into a recession and justify stealing the property to increase the value of assets on their books.

    I didn’t have beachfront property or a complex architecture on a hill or in a mountain. I had a home. It was mine. I’d been there 10 years. The bank I paid took the money and jumped ship with no notice of their intentions. An new bank laid claim with no ‘proof of claim’.

    They robbed me of my home and I lost my possessions because of the expense of the move and relocating to a smaller space.

    In my opinion, there is liability in the law firm, blindly signing documents without verifying. The law firm’s contract with the bank probably got them to accept full liability of how they service the judicial and non-judicial foreclosures.

    So banks owe the ‘people’. Stop redefining us as ‘persons’ so we have no rights. We all bleed. We have blood and flesh. We have a spirit of energy within. A person has no blood, no flesh, no spirit.

    Stop treating this as if the banks stole from a person and there is no harm no foul.

    The banks stole from ‘the Creator within’. They have a CEO, a CFO, a board of directors and more, who presumed person and put ‘person or man (also means person), or woman (also means person)’ on our Deed of Trust, that is not full disclosure.

    From that point on, they robbed us.

    WE deserve a REMEDY. We have stood up and called ‘foul’ and ‘game over’.

    Use discernment with the following, if it doesn’t resonate, put it on a shelf. You have a right to not know something, if it doesn’t make sense to you, just leave it. There is something you don’t know yet that you must learn first before this makes sense to you.

    They created a ‘trust’ and violated their fudiciary duties to the trust when the original beneficiary has not assigned the mortgage to anyone, then no one can claim a right to it.

    They violated law and factored in the cost.
    $20 billion is what they pay the states. That is ‘proof’ of a violation of some right. After that, the homeowners should be able to lay claim to what was stolen.

    Title 18, U.S.C., Section 241
    Conspiracy Against Rights

    This statute makes it unlawful for two or more persons to conspire to injure, oppress, threaten, or intimidate any person of any state, territory or district in the free exercise or enjoyment of any right or privilege secured to him/her by the Constitution or the laws of the United States, (or because of his/her having exercised the same).

    It further makes it unlawful for two or more persons to go in disguise on the highway or on the premises of another with the intent to prevent or hinder his/her free exercise or enjoyment of any rights so secured.

    Punishment varies from a fine or imprisonment of up to ten years, or both; and if death results, or if such acts include kidnapping or an attempt to kidnap, aggravated sexual abuse or an attempt to commit aggravated sexual abuse, or an attempt to kill, shall be fined under this title or imprisoned for any term of years, or for life, or may be sentenced to death.

    Constitution is for “the people” not “the persons”. Buy redefining the purchaser as a person they may have been attempting to remove the people from the rights they have as a people by defining them as person or borrower (also a person). Look at me and you see something living. You see Life.

    The constitution protects Life………..Liberty………and the Pursuit of Happiness………..and that does not mean banking instituations and their employees. It’s for all Life.

    Bank executive employees (cause Banks aren’t alive and don’t breath or think or sleep, have a body but no flesh nor blood flows through the body of a corporation (person)) and their co-conspirator attorneys and law firms are culpable for the theft.

    An equal has no power over an equal.


    Something else / someone else created you if you are a corporation or association (person).

    The governments created the (person).
    Think in the bible, not getting religious, but exposing what the book may have been trying to reveal. chapter one male and female were created by God, that’s the living and breathing. Chapter 2 man was created by LORD God.

    The Creator (all men are endowed by their Creator with rights) created male and female. That law is Divine Law, superior and supreme to anything man has created. Both man’s law and Divine Law occupy the same territorial space, so much so, you can’t tell the difference in the territories, you just have to know both are there. One is supreme over the other.

    Flesh and blood male and female cannot be pitted against a corporation that is a body with no soul and represented by an attorney.

    That’s why they want flesh and blood male and female to be represented by an attorney (Divine Law states – thou shalt have no other Gods before me – Would God need to be represented if He were in court).

    In accepting representation for who you are, you are automatically placed in the territorial and jurisdictional space of Man’s law.

    Atty vs atty
    Equal vs Equal and both of them agree to be in conflict.

    Unequal things cannot be joined together.
    Corporation vs living flesh and blood man
    (Unequal things should not be yoked together)

    A corporation (person) that is always represented it is real but not alive, cannot speak, and cannot be enjoined in a court battle with someone living and breathing who has ‘the Creator within’.

    The court case is a
    corporation vs corporation
    person vs person
    Supreme court stated a corporation can be a person.
    Notice both names are ALL CAPS on the cause.

    Who is the real party in interest behind the corporation?

    Let the real party in interest, the living, come and stand before the court and make their claim against the living.

    If you go to court and don’t expressly tell them you are the corporeal living, they ‘presume’ (look it up on a LAW dictionary) that you ‘appear’ to represent the corporation (incorporeal) of the case that is the all CAPS name that looks like the name you are called.

    The presume the case can go forward because they have ‘two representatives’ in the courtroom.

    You make a special appearance, not representing that person, as for the flesh and blood, the Creator created you. There is no need to stand anyone before you to be as your God and represent you in this conflict.

    You must learn more along these lines.
    I can’t reveal everything. Just like the Christ had to speak in parables.
    Meditate on what you need to do.
    Outside solutions are not what you need.
    Seek the answers within. Don’t be afraid of you.
    You are divine. Remember who you are. You are unconditional love.

    I have a Divine right to speak these truths.
    I move within the supreme law of the land, jure divino, by divine right.

    Divine Law states ‘Thou shalt not steal.’
    Time is running out for you to remember who you are.
    We are brothers and sisters who have lost our way.
    Be not angry at those that have robbed you, but let them know they cannot steal from you. They have to ask just like anyone else, and we say ‘no’.

    Love without conditions, but you may show them the error of their ways in their trespass against you.

    Remember who you are. Learn the world you live in.
    We got lazy and someone took over and by representation, make decisions for us as if we are infants.
    By association with them you agree to be under their control.
    You did this to you. Everything done was of your free will.
    Many would have a heart attack if they could not be ‘asociated’ with a political group – a separation – from each other.
    It’s its not politics, it’s religion, if it’s not religion it is something to separate.
    In the movie, Angel Heart, Robert Denero plays Louis Cyphre
    (called Lou Cypher) and says, “There’s enough religion in the world for men to hate one another but not enough to love.”

    Get a law dictionary in your hands. They tricked us with words of art.
    They taught us Webster in the free school, but they use Black’s Law in the paid education they got.

    A person has no hands nor feet.
    (Do not suffer my feet to be moved)
    Seen documents delivered, By my hand, on this day?
    They are ‘not a person’ when they sign those.
    You are not a person, you must be responsible for you, other wise, in my opinion, an attorney you don’t see (could be the county attorney)) may act as trustee over you and thwart things you do as by law he’ll have the right to do this to a person.

    There’s not a day that goes by where I don’t hear someone claim to be a ‘person’ without knowing what it means.
    “I’m just a person trying to make it in this world.”
    “We as persons and individuals need to stick together.’

    We listen to this and accept it as our truth and then go back to watching t.v. or being entertained.

    It’s because you didn’t take the time to know, that this is so.

    I read something where someone was upset because another would not pledge allegiance to the flag.

    Learn what you are teaching your family as tradition is also what keeps you from being free.

    You can’t claim freedom and do ‘slave’ things, or not protect your rights because you want someone else to protect them. We run to another to help us ‘live’ here.
    We want representation in government…learn what ‘govern’ means.

    You are the reason you are in this situation and if you don’t wake up and face that fact, accept the role you played in this, you will be back in this situation again.

    Freedom ain’t free, you have to work to protect it and to not lose it. You can’t take someone else’s freedoms based on what you believe about church, religion, the start of life in a womb, mental health, color, recreation drug use, etc.

    You can’t impose your rights on another and expect someone to respect your rights.

    We created this mess. By our actions separately, it accumulated as a whole into what is happening now.

    Trespass Unwanted, life, allodial, corporeal, in propria persona, in jure proprio, jure divino, the Creator within

  18. I am always glad to read when the AG are going after these mega banks and others who intensionally operated with no regards and compassion for the average homeowner. Not to mention, the lack of respect for the programs initiated by the Obama administration to help the struggling homeowner. The banks were operating like extortionist and thugs with no acknowledgement of the laws or the US. They were doing whatever they wanted and however they wanted, a practice that would destroy this country and create total anarchy!

  19. It is amazing how the banks are basically admitting that they have huge problems in the areas of fair lending and securitization.

  20. The best and a workable solution is to outlaw foreclosure and force all banks to modify mortgages with penalties. NO MORE UNDESIRABLE BIG BONUSES OR ANY UNDESIRABLE FAVORS.

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